FLEXI Smichov - Lot 5

Honest Smichov, Operating serviced apartments in Prague

Interest
8 % p.a.
Min. investment
1 EUR
Status
Completed
Investment goal 166 000 EUR
Invested 166 000 EUR
100% Filled
FLEXI Smichov - Lot 5 FLEXI Smichov - Lot 5

Investment information

  • Min term. 1 month
  • Max term. 60 months
  • Collateral value 5,500,000 EUR
  • LTV 78%
  • Location Czech Republic, Prague, Strakonicka 11
  • Developer Vihorev Group
  • Interest payout Monthly
  • Loan purpose Equity refinance loan
  • Securing Corporate guarantee
  • Project phase Operating
  • Rating Booking Rating
  • Documents

Project capital structure

Senior loan 3 100 000 EUR
Own equity 1 400 000 EUR
Fintown loan 166 000 EUR
66.4%
30.0%
3.6%

Rental Apartment #5

Executive summary

  • This lot offers an opportunity to invest in projects that have been freed up from reinvesting in other projects of previous FLEXI.

  • Loan issued to refinance equity in form of Mezzanine, subordinated to Senior Loan.

  • Project operating successfully since 2019 with consistent rental income flow. Interest paid from net cash flow generated from apartment rentals.

  • Secured by Corporate Guarantee.

Project summary

  • From the previously fundraised FLEXI projects, investors have reinvested their funds into new projects listed on the Fintown platform. We take pride in this achievement and have decided to initiate a new project, offering new investors the chance to invest in FLEXI project.

  • Investment opportunity in an operating property that generates short-term rental income, with an expected return of 8.00% per annum.

  • Developer has listed 1 unit out of 26 on the Fintown platform in order to secure a mezzanine loan, in addition to an existing bank loan, to refinance their own funds.

  • The property, Honest Smichov, is located in the heart of Prague 5's Smichov District. Seven-story apartment building has undergone a complete renovation and expansion, completed in 2019. Honest Apartments has been consistently generating rental income for over three years, primarily through the Booking platform.

  • All 26 units will be placed as separate projects, providing multiple investment options. 

Product Rental

Introducing Rental, our new product that revolutionizes the way you invest in real estate.

  • With Rental, you can enjoy daily accrual of interest on your investments and have the flexibility to withdraw funds on a monthly basis.

  • This product gives you greater control over your investments, allowing you to exit at any time without any commission or hidden fees.

Learn more about Rental and start taking advantage of this innovative product today.

Project description

We are pleased to offer a real estate investment opportunity in the form of a mezzanine loan participation for short and long-term rentals. 

Lender, Fintown s.r.o., is extending a loan to Vihorev.Investments SE, a subsidiary of the VIHOREV GROUP.

Honest Smichov, is a building renovation initiative undertaken by the development company, Vihorev Group, founded by Maxim Vihorev. Project was implemented between 2017 and 2019 and currently comprises 26 units, all of which are fully rented out through Booking.com. Rental income is managed by operating company, SPV Vihorev Management Company s.r.o. Mr. Vihorev is a seasoned real estate developer and investor with an impressive portfolio of five successfully completed projects with a total area of 7,096 square meters and three ongoing projects with a total area of 9,225 square meters.

It is important to note that the mezzanine loan is not intended for the purpose of completing construction, thus the investor-participant does not assume the risk of realizing the construction. 

Loan's purpose is to partially refinance the equity. As part of the project, one of the 26 apartments within Honest Smichov will be placed for investment, and in total, 26 separate projects for each apartment are planned. Each apartment is a separate object of the credit relationship and has its own profitability to cover all costs associated with operating activities and the cost of paying interest on loans.

Investors can expect to receive interest payments on a monthly basis throughout the life of the project.


Investment product description

Product

Rental 

Loan purpose

Loan for equity refinancing

Location of the funded project

Prague 5, Strakonicka

Borrower

Vihorev Investments SE

Collateral Value

€5,500,000

Senior loan

€3,100,000

Fintown loan

€1,200,000

Borrower equity

€1,400,000

Interest payout

Monthly

Start of interest accrual

Rapidly from the investment date

Max. term of the project

60 months

Project information

  • Honest Smichov project is a residential rental opportunity located in Prague 5, Smichov neighborhood. 

  • Seven-story apartment building has undergone a comprehensive renovation and expansion, with the addition of an approved extension in 2018. Each floor of the building features a variety of apartment types, including 1+kk studios, 2+kk apartments, and 2+1 apartments. 

  • To date, a total of 26 fully equipped and furnished apartments have been rented out, and are available for both short-term and long-term rentals. 

  • They can be found on the Booking.com website under the name "Honest Apartments". 

  • Rental program was launched in June 2019.

Explore Honest Smichov official website.

Project basic information

Total number of apartments

26

Total amount of leased area, m2

965

Average area of a leased unit, m2

35

Commercial analysis

  • Rental operations for Honest Apartments are managed by SPV Vihorev Management Company s.r.o. 

  • Apartment rentals launched in June 2019 and now available on multiple platforms, including Booking.com, Airbnb, Expedia, and Flatio. 

  • Property has received outstanding reviews from guests, with an average rating of 9.1 out of 10 based on over 2000 reviews. 

  • Honest Apartments has established a reputation for excellence in the industry.

Honest Apartments performance

Apartments in popular Smichov district in Prague are always in demand - making it a great investment opportunity!
The following highlights further demonstrate this:

  • Average annual apartment occupancy of 91%, among the highest in Europe.

  • Consistent demand throughout the year, with minimum dependence on seasonality.

  • Consistent 67 EUR ADR (average daily rate) reflects the stability of the inflow of funds and the economic attractiveness.

Month

Occupancy %

ADR, EUR

January 2022

69,35

45,58

February 2022

89,56

40,7

March 2022

94,42

45,16

April 2022

97,44

65,98

May 2022

93,8

70,82

June 2022

93,33

72,32

Jule 2022

94,67

73,42

August 2022

97,15

75,83

September 2022

94,36

77,25

October 2022

96,65

78,85

November 2022

84,1

66,96

December 2022

92,43

89,35

Total Average 2022

91,44

66,85

Financial analysis

Investment opportunity involves the phased placement of each of the 26 apartments within Honest Smichov on Fintown platform as separate projects.
This provides multiple investment options for interested parties.

Project metrics, EUR

For all 26 units

Collateral Value

5,500,000

Senior Loan

3,100,000

Fintown loan

1,200,000

Own equity

1,400,000

Fintown Fundraised

Operating Cash Flow

Estimated annual rental revenue

660,000

Estimated annual operating costs

(240,000)

Senior loan annual interest expense

(156,000)

Net Cash Flow (Before Fintown loan)

264,000

Fintown loan annual interest expense

(120,000)

Net cash flow (Total)

144,000

Interest and costs for Fintown investors

  • Commission-free for the use of the Fintown platform.

  • No hidden fees for exiting at any time after min. term. during the project.

  • Interest for Fintown investors is 8.0% per annum.

Please register or log in to see full details

Login / Register